"We believe a NDAQ-CBOE combination would have strong
strategic merits for both companies," Howard Chen wrote in a
note to clients devoted to an analysis of such a takeover,
although no such deal has been announced. Chen raised his
rating on the operator of the Chicago Board Options Exchange to
"outperform."

A wave of financial exchange consolidation, including a
planned takeover of NYSE Euronext NYX.N by Deutsche Boerse AG
(DB1Gn.DE), has spurred speculation over what other
combinations could be in the offing. As the last independent
North American exchange with a lineup of highly popular,
profitable, and exclusively listed contracts, CBOE is "the most
likely near-to-intermediate term takeout candidate," Chen
wrote.

Nasdaq could also try to buy the Toronto Stock Exchange,
breaking up the Canadian bourse's planned merger with the
London Stock Exchange, Chen said. CME Group Inc (CME.O) could
also buy Brazil's BM&F Bovespa (BVMF3.SA), with which it has a
cross-shareholding arrangement, "further down the road," he
wrote.